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Burn rate measures how quickly your company is spending cash. Cash burn rate is typically calculated on a monthly basis, which can be difficult to track as an early-stage founder.
Input your cash balance by month, and our free Burn Rate Calculator for founders helps estimate when you will run out of cash and when you should plan to raise more capital.
Our Burn Rate Calculator measures gross and net burn rate using these formulas:
Gross burn rate is your company’s total monthly expenses. Calculate gross burn by determining your average spend over a period that is representative of your company’s future (a month, three months, etc).
Net burn rate is your gross burn minus revenue. Calculate net burn using this formula: Net burn equals (=) gross burn rate minus (-) monthly revenue
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